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Getting results

While the acquisition by IBM of Sequent Computer Systems was big international IT news last week, the local industry saw a host of financial results being released.
Paul Booth
By Paul Booth
Johannesburg, 19 Jul 1999

Microsoft became the first company in the world to top $500 billion in market value when its shares hit an all-time high last Friday.

The acquisition by IBM of Sequent Computer Systems (see Booth`s Bites, 5 July 1999) and the take-over by Walt Disney of the remainder of Infoseek which it didn`t already own (57%), in a venture to be called Go.com dominated the international IT world last week. At home, Global Technology`s various acquisitions and local results stole the limelight in a comparatively quiet week.

On the local front

  • the satisfactory listing of Bynx in the IT sector of the JSE;

  • excellent year-end figures (maiden results) from Zaptronix; and

  • good year-end numbers (maiden results) from Core Holdings and Crux Technologies.

[Local]

Local acquisitions, mergers, investments etc (see attachment).

Local Cautionary Notices (see attachment)

Local Listing calendar (see attachment)

Other local news included:

  • the appointment of Terry Kelly as the new MD of Datatec`s Westcon division;

  • the news of a significant board restructuring at Elexir; and

  • the announcement that the MIH group will de-link its shares from M-Web with the latter listing separately from the beginning of August in the development sector of the JSE.

On the international front

  • the announcement by Intel that it will establish a separate communications product group to house its home-grown communications interests and the many recent acquisitions it has made in this area including Dialogic and Shiva;

  • the speculation that Peter Hellman, the former COO and president of TRW, is to be the new CEO at Compaq; and

  • the name change of Harris Semiconductor to Intersil.

[International]

International acquisitions, mergers, joint ventures etc (see attachment).

Other international news included:

  • rumours that Compaq may acquire Unisys as a shortcut to achieving its services ambitions, and that SAP may acquire Sybase;

  • the appointment of Bob Pemberton, one of the founders of the company, to the position of president and CEO of Infinium;

  • the resignation of the president of AMD, following its quarterly results; and

  • the announcement by the Japanese giant, Softbank, that it will sell its interests in Kingston Technology to its founders, and US publishing subsidiary Ziff-Davis.

Financial results

We saw excellent figures from Allaire, CNET, SanDisk, Veritas and Whitman-Hart.

Losses, however, came from 7th Street.com, Aerial Comms, Aspect Telecomms, Celeritek, Coyote Systems, CTI Group, EarthLink Network, Evans & Sutherland, Exabyte, Geac Computers, IJNT.com, ImaginOn, Inktomi, Iomega, ION Networks, Larscom, Nextel Comms, Object Design, Read-Rite, Silicon Storage Technology, Silicon Valley Research, Telxon, Terayon Comms Systems and Xaar.

Good numbers were recorded by Actuate, Advent Software (back in the black), Altera, Apex, Applied Micro Circuits, Apple, Avant!, Computerland, Computer Research, Concord Comms, Dallas Semiconductor, DSP Comms, Equinox, HNC Software, Informatica (back in the black), Intel, Latitude Comms, Mercury Interactive, Microchip Technology, Pervasive Software, Rambus, Rational Software, Dynamics, TDS (back in the black), Timberline Software, Tricom, US Cellular and Vitesse Semiconductor.

Satisfactory results were reported by Butler International, C-Cube, Ceridian, Computer Task Group, Digital Link (back in the black), Keane, Motorola (back in the black), Multiactive Software (back in the black - just), NET, S3 (back in the black), Seagate and Unisys.

Mediocre returns came from AMD, AMS, Andrew Corp, Dataware Technologies, Digital Microwave (back in the black - just), ODS Networks (back in the black - just), PairGain Technologies, Rogue Wave Software and SEMX. Very poor results came from Cambridge Technology Partners, Printware and Tollgrade Comms.

Other financial news included profit warnings from Cree Research, Cybercash, Intergraph, Micrografx, Parametric Technology and Seagate. There were share split announcements from Qlogic and Texas Instruments.

Stock movements

Locally

AST (-16.7%)
Billcad (-24.1%)
Casey (-23.8%)
CIH (-20%)
Dectronic (+40%)
Elexir (-20%)
Infiniti (+26.1%)
Infowave (-28.9%)
MMW (-17.1%)
Paradigm (-34.2%)
Spescom (-21.3%)
Stella (-24%)
USKO (-16%)
Whetstone (-50%)
Y2KTec (-23.1%)
Zaptronix (+23.3%)

Internationally

Cambridge Technology Partners (+20.5%)
Cable & Wireless (+21.9%)
IMSI (+31%)
Information Advantage (+56.3%)
Ingram Micro (+23.6%)
Intergraph (-29%)
JBA (+34.7%)
Legato Systems (+20%)
Segue Software (+20.8%)

Final word

Microsoft became the first company in the world to top $500 billion in market value when its shares hit an all-time high last Friday.

Additionally, Business Week`s recently published Global 1000 shows IT/telecommunications companies occupying five places in the top 10, nine places in the top 20 and 29 in the top 100. In the emerging top 200 lists there are four in the top 10, 11 in the top 20 and only two from SA in the list at all, namely Dimension Data at 141 and Comparex at 172. How things change; 10 years ago, only two IT/telecommunications companies were in the top 10, with IBM the only one in both top 10 lists.

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